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INTRODUCTION

The telecom industry has evolved very rapidly during last 10 15 years, from the
basic telephony provided by BSNL,MTNL a government companies the other
private players also came into the picture. The gradual progression from the basic
telephony to mobile and other value added services to the users.

Internet is the one of the important addition to the services. Recently Reliance Jio
has made its presence in the market of Telecom Industry it is offering 4G Internet
service and FREE Internet and Voice usage till Launch as pre launch offer. It
is a big game changer in the telecom industry as people has new choice and other
telephonic and data service provider faces a new challenge to cope up with the
situation. Today customer is the king in the telecom sector as it has many choice
and preferences to opt a mobile handset and mobile connection for voice and data.
In this project we are going to find the effect and awareness about the Jio offer and
what are the offerings made by the competitors like Vodafone, Airtel, BSNL etc.
what is the marketing strategy opted by the Reliance Jio to capture the market and
what could be the possible effect could be seen after the launch of Reliance Jio.

RELIANCE JIO SCHEME


Reliance Jio Infocomm Limited

Reliance Jio Infocomm Limited (RJIL), a subsidiary of Reliance Industries Limited


(RIL), Indias largest private sector company, is the first telecom operator to hold
pan India Unified License. This license authorises RJIL to provide all
telecommunication services except Global Mobile Personal Communication by
Satellite Service.

RJIL holds spectrum in1800 MHz (across 14 circles) and 2300 MHz (across 22
circles) capable of offering fourth generation (4G) wireless services. RJIL plans to
provide seamless 4G services using FDD-LTE on 1800 MHz and TDD-LTE on
2300 MHz through an integrated ecosystem.

RJIL is setting up a pan India telecom network to provide to the highly


underserviced India market, reliable (4th generation) high speed internet
connectivity, rich communication services and various digital services on pan India
basis in key domains such as education, healthcare, security, financial services,
government citizen interfaces and entertainment. RJIL aims to provide anytime,
anywhere access to innovative and empowering digital content, applications and
services, thereby propelling India into global leadership in digital economy.

RJIL is also deploying an enhanced packet core network to create futuristic high
capacity infrastructure to handle huge demand for data and voice. In addition to
high speed data, the 4G network will provide voice services from / to non-RJIL
networks.

Reliance Jio is part of the Bay Of Bengal Gateway Cable System, planned to
provide connectivity between South East Asia, South Asia and the Middle East,
and also to Europe, Africa and to the Far East Asia through interconnections with
other existing and newly built cable systems landing in India, the Middle East and
Far East Asia.

RJILs subsidiary has been awarded with a Facility Based Operator License (FBO
License) in Singapore which will allow it to buy, operate and sell undersea and/or
terrestrial fibre connectivity, setup its internet point of presence, offer internet
transit and peering services as well as data and voice roaming services in
Singapore.

RJIL has finalised key agreements with its technology partners, service providers,
infrastructure providers, application partners, device manufacturers and other
strategic partners for the project. These strategic partners have committed
significant resources, knowhow and global talent to support planning, deployment
and testing activities currently underway.

Reliance Jio has:

An agreement with Ascend Telecom for their more than 4,500 towers across
India. (June 2014)
An agreement with Tower Vision for their 8,400 towers across India. (May
2014)
An agreement with ATC India for their 11,000 towers across India. (April
2014)
An agreement with Viom Networks for their 42,000 telecom towers. (March
2014)
Agreement with Bharti Airtel for a comprehensive telecom infrastructure
sharing agreement to share infrastructure created by both parties to avoid
duplication of infrastructure wherever possible. (December 2013)
A key agreement for international data connectivity with Bharti to utilise
dedicated fiber pair of Bhartis i2i submarine cable that connects India and
Singapore. (April 2013)
Agreements with Reliance Communications Limited for sharing of RCOMs
extensive inter-city andintra-city optic fiber infrastructure of nearly 1,20,000
fiber-pair kilometers of optic fiber and 500,000 fiber pair kilometers
respectively (April 2013 / April 2014) ,and 45,000 towers (June 2013).
From less than 700 professionals a year back, the RJIL Jio team has grown
rapidly to a national footprint of over 10,000 professionals today.

TELECOM INDUSTRY

Indian telecom industry is one of the world largest growing industry, it has massive potential to
serve people and it is improving day by day. With the upgradation in the technology and the
public demand all major players from all over the world are putting their money and efforts to
make this sector profitable for them. With liberal industrial policies by the government is also
facilitating investors to put their money in this sector. Telecom industry is a service industry in
which the people are getting services form the various telecom operator earlier it was only voice
than it moved on to various value added services like SMS, MMS, Internet etc. technology
changes from 2G to 4G as the portion of Internet has beaten the other apps. People got the
smartphone and combination of Internet that has changes the competitive statistics in the market.

There are many players in the Indian telecom market like, Aircel/Dishnet, Bharti Airtel, Loop
Mobile (BPL Mobile), Idea/Spice, Reliance Communications, Tata Teleservices, Vodafone
Essar, Uninor (Unitech), Videocon, S Tel, Bharti Telenet, Reliance Infocomm, Tata
Teleservices, Sistema (Shyam Telelink), Swan Telecom, Videsh Sanchar Nigam Ltd (VSNL),
Bharat Sanchar Nigam Ltd (BSNL), Mahanagar Telephone Nigam Ltd (MTNL).

Telecom industry has raise the entry and exit barriers for new comers, it requires huge amount of
investment in terms of physical and manpower resources. Bharti Airtel cancelled its plans to
purchase the assets and subscribers of Loop Mobile; this left Loop in an impossible situation,
inevitably exiting the market. The customers are getting more smart intelligent and techno savvy,
this increases the expectation from the service providers better services at the most competitive
rates. The market segmentation in the telecom sector ranges from the rural to urban and from
individual to the corporate sector, it is a huge population base with different
desires and choices.

MARKETING STRATEGY IN TELECOM SECTOR

We dont care. We dont have to. Were the phone company. - Lily Tomlin
The American actress Lily Tomlins (1976) quote shows the marketing attitude of telephone
companies in the landline telephony dominant period of telecommunication services in the
Unites States. This statement was true earlier but in the current scenario telecom companies have
to care about the business and the customer as their assets. It is due to high customer base and
growing competition in the telecom sector with foreign direct investments and customer driven
market.

The market performances of the organisations are primarily driven by their marketing strategies.
The marketing strategy consists of the analysis, strategy development and implementation
activities in: developing a vision about market(s) of interest to the organisation, selecting market
target strategies, setting objectives and developing, implementing and managing the marketing
program designed to meet the value requirements of the customers in each market target. The
marketing strategy seeks to deliver superior customer value by combining the customer
influencing strategies of the business into a coordinated set of market driven actions. Strategic
marketing provides the expertise for environmental monitoring, for deciding what customer
groups to serve, for guiding product specifications, and for choosing which competitors to
position against. The customers value requirements must be transferred into product design and
production guide lines. Market targeting and positioning strategies for new and existing products
guide the choice of strategies for marketing program components.

The SWOT analysis of Telecom Company, leads us to the picture where the analysis can be
driven out about the strengths and weakness and the opportunity and threats for the players.

The successful marketing strategies are formulated through the right combination of services
marketing mix, the seven Ps, specifically product, price, place, promotion, people, physical
evidence and process. Therefore the product strategy, pricing strategy, distribution (place)
strategy, promotion strategy, people strategy, physical evidence strategy and process strategy are
widely utilized by the telecom service providers to design, develop, differentiate and implement
their marketing strategies.

RELIANCE JIO PRE LAUNCH OFFER


The Reliance Jios pre-launch offer has two things one the voice and data from Reliance and
other one is Mobile devices named LYF. It is a pre-launch offer and most ambitious and
expensive startup project. The Jio effect can be seen easily in the market people are getting crazy
to get Jio SIM and avail associated offer with the new SIM and another offer is with the LYF
mobile devices that will last till year 2017. This offer makes the market environment very
turbulent and forcing the competitors to place strategy against it.

Vodafone, Airtel who are established players in the market are making their moves to defend
their territories by offering new offers to the new customers who joins their network for voice
and data.

In Indian contemporary scenario, the data is being widely used people are using apps like
Facebook, Watsapp, WeChat, Viber and other utility apps like Railways and online shopping
apps they all need Internet connectivity. The telecom service provider are moving to the next
generation of technology with LTE/4G to make the customers stay with them, this is a buyers
market and buyers are in position to make the service provider give them what they want in this
position the Reliance offer is working as a bargaining tool.

People are happy with their current service providers for voice and data but with the Reliance
offer they are moving to have another alternate option so that they can decide later what to do
with the current connection. If the Reliance Jio effect works in future then the conditions will be
getting worse for the other players in the
market. The Indian markets is very price sensitive market and Reliance strategy is to target the
price sensitive market segment, till now this strategy is working successfully. It is only to be
expected that a company into which Rs.1.35 trillion has been invested (and an additional
Rs.15,000 crore is being invested) will do so. But it isnt just the telecom companies that need to
worry about the new Godzilla on the block. Jio will also disrupt the media and software
businesses through ownership or aggregation, and delivery. Thats a classic information
economy play of parent Reliance Industries Ltd.s famous complete backward- and forward-
integration strategy. Chairman Mukesh Ambani translated that into the farm-to-fork strategy in
retail (with mixed results, at least until now) and now, the pipe-to-play model in telecom. But
can Indias largest start-up manage hundreds of millions of customer accounts and navigate the
emerging business models of software and content? Thats the Rs.1.5 trillion question.

COMPETITORS OFFERINGS
The competition to defend the market pie of competitors and stop migrating the customers from
current telecom provider and offering them unbeatable offer is the urgency of present players in
the market. The established players like Vodafone, Airtel and BSNL etc. are making their effort
to stop their customers from choosing Reliance as an alternative although it is a strong
alternative in the market.

To retain and add more customers the players in the market are offering more lucrative offers
like slashing the tariff, offering more data to the new customers etc. and moving towards high
end mobile technology like 4G. Following are the offers made available to the customer to beat
the competition against Reliance.

Airtel free 4G data plan till December 31, 2016


Airtel is offering a 15 GB data pack for 90 days for Rs 1495. Currently available in Delhi, the
company plans to launch the scheme in other circles soon. Once you have consumed 15 GB data,
you can use the Airtel App for free 15 GB additional data. Once you have consumed 30 GB
data, the internet speed will be automatically reduced to 2G.

Vodafone free 4G data plan till December 31, 2016


Vodafone, the second largest telecom operator has also made a pitch for competing with JIO and
Airtel offers. The company has rolled out a free data plan offering 10 GB 4G mobile data at the
cost of 1 GB data. But it is only for Vodafone consumers with new smartphones. You will get
additional 9GB 4G mobile data when you
will recharge for the 1 GB plan, which is available for Rs 250/28 days. The new plan can be
availed till December 31, 2016 by both prepaid and postpaid consumers.
Vodafone 4G
Vodafone 4G is the worlds largest network of 4th generation internet high speed
connectivity. After it has reached 3G services across the lengths and breadths of
the nation, Vodafone has taken up the job to spread the 4G network among its
customers. It started its 4G services in the state of Kerala. After that they have
started
launching 4G data packs for customers of Karnataka. Its cheapest 4G pack comes
at Rs. 29 for a 120 MB data which has validity period of 3 days and the largest
package is of Rs. 2,499 for 20 GB of 4G high speed data.
Vodafones other voice and data packages are as follows:

Vodafone has revised its 3G/4G monthly recharge packs.


Earlier, 650 plan offered 3GB data, but under the revised scheme
users will get 5GB at the same price.
449 3G/4G plan will have 50 per cent more data. Under the revised
scheme, data has been increased from 2GB to 3GB.
The revised 999 3G/4G pack will now offer 10 GB data, offering
54% more benefits.

Airtel 4G

Bharti Airtel has the largest network of 4G services provided in India. It has
launched its 4G services in almost every major city in every state of the country.
With uninterrupted high speed 3G data services, it is current ruling the 4G market
in India. The Airtel 4G data packs can be accessed by the customers through their
smart
phones enabled with 4G. Also there are 4G dongles available in the market
launched by Airtel to spread 4G connectivity in the country. One can buy a 10 GB
4G data in Trivandrum for Rs. 1,347. But this same data pack costs a whooping Rs.
1,998 in Amritsar. There are different ranges of products of 4G data packs by
Bharti Airtel.

Airtels other voice and data packages are as follows:


Airtel has reduced its 4G/3G data by nearly 80% and for corporate customers it
has reduced the prices by up to 60%.
Under their latest scheme, customers have to pay 1498, post which one will get
1GB for 51.
When compared with the current market rate, users would be saving nearly 30%
for 1 GB per month data and 37% for 2 GB each month.

Idea 4G

Unlike Airtel, which provides 4G internet services throughout the nation, Idea cellular only has
its 4G services limited in few states of southern India. The 4G spectrum by the Idea cellular is
present only in the states of Tamil Nadu, Kerala, Andhra Pradesh and Karnataka. There are
various ranges of data packs of 4G internet services by Idea. Right now there is a limited offer of
extra double data with the 4G packs given by Idea. A 1 GB 4g data pack of Idea costs Rs. 249.
In addition to this, Idea is giving another 1 GB free under a limited period offer to its customers.
Also the price of 10 GB of 4G data is Rs. 1,346 along with which another 10 GB data is
absolutely free. So Idea has the lowest rates of 4G data right now compared to Airtel and
Vodafone.

Ideas other voice and data packages are as follows:


Idea was also in the league of slashing data tariffs by up to 67%.
Users will now get 4G/3G data of 5GB for 649.
Users who want 10GB of 4G/3G, then it shall come at a price of
990.

Airtel Launches myPlan Infinity with Unlimited Local, STD &


National Roaming Calls and 3G/4G data

The big cat fight is growing more and more between the leading telecommunication providers
regarding the rates and the data plans. In this era of online world, where one provider is offering
speedy net connection, others are slashing the rates to the lowest level to grab more customers.
After the introduction of Jio net connection by Reliance Communication, other service providers
like Vodafone, Airtel and Idea make sure to offer much cheaper plans to the customers. The
Delhibased telecom service provider Bharti Airtel lands up with a new data plan myPlan
Infinity that allows you to make voice call for free. Also under this plan you can enjoy unlimited
music from Wynk Music and Wynk movies.

Airtel 4G vs. Idea 4G vs. Vodafone 4G JIO 4G Data Plan Comparison 2016

From the start of 2016, we have seen the big players in the telecom and networking
industries are gearing up with their 4G plans for the customers. 4G or the 4th
generation internet is nothing but improved and high speed internet service
gateway, from the existing speeds. The big players out there in the market offering
4G services to millions of customers are Airtel, Idea and Vodafone. Also there are
other competitors getting up in line like the mighty Reliance. The 4G internet
services are still not totally available in all parts of the country. These companies
have launched these 4G services only in selected states. Below are the comparisons
of the various 4G internet facilities by Idea, Vodafone and Airtel.

BSNL

The PSU mobile operator is offering 1GB of 3G only data at a price


of 198.

With all the above information and facts depicts that the customer is king of the
market and a single offering or change in the wave can effects the market
condition, in the present condition the customers are enjoying the slashed rates for
voice and data, but the offering made by the competitors are for the shorter time
once the
JIO effect is over and the turbulence of the market is settle down then the actual
competition among the telecom service provider begins. That make the customer
who is the deciding factor now and then also he is the one who usage the services
offered by the various telecom providers. It is very important to know the
perception of the customer about the JIO effect, to the same the researcher has
floated the questionnaire to know what factors are there to relate the JIO effect and
what is the expectation form the telecom service provider.

CUSTOMER PERCEPTION ABOUT THE


RELIANCE JIO EFFECT

The market is customer driven ,the telecom company can offer its best
plans but the choice is of customer. In the current scenario the customer is
mostly younger generation with high end smartphones they are the users of
Data and Voice, mostly young generation are using data in various
application like instant messaging application, browsing, downloading,
games etc. the Reliance JIO offers free Voice and Data till 31stDec. 2016
and with LYF mobile devices it will last till 2017. People are taking Reliance
JIO SIM firstly due to the pre-launch offer where the data
and voice are free till the launch.

CONCLUSIONS

To conclude,it can be obtained that JIO has made its effect on the market both on
customers and the competitors the young generation is the target customer majorly,
other people are making offers to either retain or add new customers. Thus,it is
very clear that the market is effected by Reliance JIO Effect.

Now a days, mostly youth ranging from 15 25 years of age are all having high
end Mobile devices for communicating they are the population group who are
using data and internet mostly for the communicating and entertainment purpose.
They are using smartphones for online purchase, gaming, instant messaging etc.
this is the most preferred targeted group who needs
free voice and data the Reliance has targeted the same. The Reliance JIO effect
has set the world record for having JIO connection in very short span of time
frame, Indian scenario is the price sensitive scenario where people shift from one
vendor to another for very small difference of amount, here Reliance JIO is giving
free voice and data till 31stDec, 2016 it is a big loot offer for customers. People
are waiting for the next best in post launch offer, if the competitors are not giving
the best they will continue with Reliance JIO as secondary connection for data
usage. The JIO effect, has done its job in making market turbulent and placing
Reliance JIO as prominent alternate for voice and data at 4G speed.

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